Online Stock Trading - ECB is Clueless Says Nightingale
ECB Doesn't Have a Clue and BoE probably only has a quarter of clue
Roger Nightingale has just been on CNBC talking about the economy and the decision by the Bank of England and t
he European Central bank to cut interest rates.
His verdict ? The ECB is the only bank that makes the Bank of England look good. They are "hopeless", "the worst bank in the world", "they haven't got a clue" "they are 18 months behind the curve".
The peak of the economic cycle was Autumn 2006 in the USA and early 2007 in Europe and yet Trichet continued to increase interest rates ! That is how clueless he was. He should have been cutting interest rates 2 years ago and they should be at 0% now. Hopeless and paid for by your tax money - salary of €345,252 - plus perks no doubt, although I'm guessing on that one.
However, Jean Claude Trichet has the enviable quality of being always right. Even though we are in the midst of the worst recession/depression in anybody's living memory and with no end in sight, every time Trichet speaks it is to say he was right, always and under all circumstances he never makes a mistake ! Ha ha ha. God help us if he ever got anything wrong, then where would we be ? And don't get me started on Gordon Brown.
(Inspector Clueless)
The DOW is down 200 again today and some people are saying DOW 4000 is on the way. Other more moderate analysts say another 10% downside i.e. 6,000 on the DOW and 632 on the S&P.
Roger Nightingale also said BUY GILTS ! Yields will come down - a bubble will be created but it will be in 5 or 10 years time. This is more like a depression than a recession and the economy is not picking up any time soon. He suspects banks will still not lend because they don't think people or companies will be in a position to pay back due to the terrible economic climate.
It is worth bearing in mind that Roger Nightingale has been highly critical of the Bank of England and the ECB and Trichet in particular for the last 2 years, and he has been right ! They are clueless, and so were the bankers that created this mess. For someone who wasn't clueless and who got out when the going was good, read the Letter to the Idiots by Andrew Lahde
Jack Bouroudjian on the US CNBC says Trichet is late to the party. He said however that it makes sense to start nibbling at these levels provided the government helps the entrepreneurs - thinks the bad news may be baked in. He's braver than me !
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